DOJ OKs indictment of ex-head of Parañaque rural bank over Legacy scandal

MANILA, Philippines - Justice Secretary Agnes Devanadera ordered yesterday the filing of criminal charges against the former president of the padlocked Rural Bank of Parañaque.The bank was linked to the alleged fraudulent operations of the Legacy Group of Companies of Albay town Mayor Celso de los Angeles Jr.

Senior State Prosecutor Emilie Fe de los Santos said Virgilio Odejar will be charged with violating Republic Act 7653, the New Central Bank Act, for falsification of public document.

“The act of Odejar in submitting an overvalued real and other properties acquired by making use of the property subject matter of deed of assignment in order to make it appear that the bank was solvent was deceitful and therefore it injured not only the Bangko Sentral ng Pilipinas but the public as well,” she said.

Odejar would be held accountable under section 35 of RA 7653 and Article 171 section 4 in relation to Article 2 section 1 of the Revised Penal Code, according to prosecutors.

Odejar had allegedly falsely reported in financial statements that the bank’s real and other properties owned or acquired had amounted to P3.728 billion, including the bank’s outstanding receivables from Conventional Realty Corp. in the amount of P667 million.

Part of the properties included in the financial statement of the bank was a property in Talisay, Batangas donated by Aurora Aguinaldo to Emilio Aguinaldo IV, who later sold the property to the bank for P17.42 million.

Despite the property transfer, Odejar on behalf of the bank executed a deed of assignment in favor of Aguinaldo for a huge consideration of P696 million.

Aguinaldo, a descendant of President Emilio Aguinaldo, was also charged with Odejar.

However, the DOJ cleared him.

There was insufficient evidence that Aguinaldo conspired with Odejar in the falsification of public document as the BSP failed to prove the scope and participation or involvement of Aguinaldo in the preparation of the deed of assignment which was falsified, read the DOJ the resolution.

The DOJ continues to investigate other complaints against Legacy and De los Angeles, his relatives and other officials of the Legacy Group.

Charges were also filed by the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Philippine Deposit Insurance Corp., private investors and other private individuals.